AIR NAVIGATION SYSTEM UPGRADING

complete

Procurement and installation of modern air traffic control equipment and associated services. Operation objectives: (a) to ensure aviation safety in the Ukrainian air space according to the policies and procedures of the International Civil Aviation Organisation; (b) to help to attract incremental overflight traffic to realise hard currency earnings potential; (c) to assist the borrower in its institutional transformation into a commercially run company. Transition indicators related to the project include: (i) skill transfer - the Bank will provide support to UKSATSE management for a project that will have investment implications not only for the aviation sector but also for the company's involvement with foreign financing methods and procurement procedures (consultancy assistance to be provided to the Project Implementation Unit); (ii) competition/market structure - the project will ensure implementation of market-oriented management and operational practices in providing air navigation services; (iii) institutional functioning - the main operational procedures and methods (including financial reporting and business planning) will be revised and adapted to modern operational standards with the assistance of the management information systems consultants which the airport will employ under the terms and conditions of the loan. Ukrainian State Air Traffic Services Enterprise (UKSATSE), a state-owned company operating the air navigation system in Ukraine. US$ 25.4 million (ECU 20.1 million) loan. US$ 43.4 million (ECU 34.4 million). This project was classified as C/0, and therefore does not require an environmental assessment or audit. The Bank will require, however, a letter from the Ukrainian Ministry of the Environment specifying any environmental permits or authorisations required for project implementation. Copies of any such authorisations will need to be submitted to the Bank prior to Board approval. US$ 200,000.